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Monday, January 30, 2006

I "nursed" this position until the last few seconds of the session! It was slow to unwind, but paid off - delivering ~5%.

1.) What did I see?A gap up and wide-range first bar (almost too wide range...I was worried it made it's entire move in that first bar). The second bar was a narrow-range, inside bar and formed a nice hammer.2.) What is the entry?A break of the second bar high*.3.) What is the exit?The target was the Fibonacci extension of the previous day's low to the opening range high; it was never hit but came close at the end of the day.

*as with any entry below/above a previous high/low (in the case of my charts, the opening range (OR) high/low), you need to watch for resistance/support as price approaches those levels. If it stalls, you want to exit. If it breaks through, the odds are good you will have a move to the corresponding Fibonacci extension.

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DISCLAIMER - I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES; I JUST POST MY THOUGHTS, TRADES, AND OPINIONS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS. ALL CHARTS ARE COURTESY OF REALTICK. ALL TIMES INDICATED ARE NY (EST).